Instructions For Forms 8804, 8805, And 8813

section 1.1446-3(a)(2) for additional

Line 6c

Line 9

information.

Line 6c applies only to partnerships

Enter the partnership ECTI allocable to

If the partnership has net ordinary loss,

treated as foreign persons and subject to

the foreign partner (before considering

net short-term capital loss, or net 28%

withholding under section 1445(a) or

any partner certifications under

capital loss, each net loss should be

1445(e)(1) upon the disposition of a U.S.

Regulations section 1.1446-6T).

netted against the appropriate categories

real property interest.

The partnership must provide a

of income and gain to determine the

statement (generally Schedule K-1 (Form

Enter on line 6c the amount of tax

amounts of income and gain to be

1065)) to the foreign partner that lists

withheld under section 1445(a) and

entered on lines 4d, 4g, and 4h,

each income type of ECTI included on

shown on Form 8288-A, Statement of

respectively. See section 1(h) and Notice

line 9. The income types of ECTI that may

Withholding on Dispositions by Foreign

97-59, 1997-45 I.R.B. 7, for rules for

be included on line 9 are:

Persons of U.S. Real Property Interests,

•

netting gains and losses. In addition, if the

Net ordinary income.

for the tax year in which the partnership

•

partnership has received any certificates

28% rate gains (non-corporate partners

disposed of the U.S. real property

under Regulations section 1.1446-6T,

only).

interest.

•

then the netting rules of section 1(h) and

Unrecaptured section 1250 gains

Also enter on line 6c the amount of

Notice 97-59 must be considered in

(non-corporate partners only).

section 1445(e)(1) tax withheld on a

•

determining the category of income such

Qualified dividend income and net

distribution by a domestic trust to the

items offset.

long-term capital gains (including net

partnership with respect to the disposition

section 1231 gains) (non-corporate

Line 4g. Enter the unrecaptured

of a U.S. real property interest by the

partners only).

section 1250 gains allocable to

trust. The amount withheld will be shown

non-corporate partners. If you have a

Line 10

in box 7 of the Form 1042-S the

reduction to this amount due to the

partnership receives from the trust. (Box 1

To calculate the total tax credit allowed to

application of the netting rules referred to

of the Form 1042-S will show income

a foreign partner under section 1446,

in the last sentence of the last paragraph

code 25 or 26.)

subtract from each type of ECTI allocable

above, net this reduction against the

to the foreign partner the amount of

unrecaptured section 1250 gains

For both of the situations described

losses or deductions certified by the

allocable to non-corporate partners before

above, do not enter more than the

partner under Regulations section

entering this amount on line 4g. Also,

amount allocable to foreign partners (as

1.1446-6T that the partnership considered

attach a schedule showing (1) the amount

defined in section 1446(e)). Enter

in determining that partner’s portion of the

of partnership level unrecaptured section

amounts allocable to U.S. partners on line

section 1446 withholding tax due. Then

1250 gains allocable to foreign partners

15f of Schedule K (Form 1065) and in box

multiply each net amount by the

before the reduction caused by partner

15 (using code P) of Schedule K-1 (Form

applicable percentage (see page 3 for

level certificates under Regulations

1065). For Form 1065-B, enter amounts

definition). Finally, total the resulting

section 1.1446-6T; (2) the amount of the

on line 15 of Schedule K and in box 9 of

amounts.

reduction for certificates under

Schedule K-1.

Regulations section 1.1446-6T; and (3)

The partnership is required to

Line 8

the net amount reported on line 4g.

attach the computation referred to

If Schedule A (Form 8804) is attached,

Note. Partnership ECTI on which a

above to the Form 8805 (see

CAUTION

check the box on line 8 and enter the

foreign partner is exempt from U.S. tax by

Regulations section 1.1446-6T(d)(2)(ii)).

amount of any penalty on this line.

a treaty or other reciprocal agreement is

The partnership is also required to attach

not allocable to that partner and is exempt

any certificates received under

Form 8805

from withholding under section 1446.

Regulations section 1.1446-6T that the

However, this exemption from section

partnership considered in whole or in part

Line 1b

1446 withholding must be reported on

in making this calculation.

Form 8805. See instructions for line 8b of

A partnership must pay the withholding

Schedule T–Beneficiary

Form 8805 below.

tax for a foreign partner even if it does not

Information

have a U.S. TIN for that partner. See

Lines 4b, 4e, and 4i

If the foreign partner is a foreign trust or

Taxpayer Identifying Number on page 1

estate, the foreign trust or estate must

Enter the reduction to the partnership’s

for details.

provide to each of its beneficiaries, a copy

ECTI allocable to foreign partners (by

Line 1c

of the Form 8805 furnished by the

income type) by reason of valid

partnership. In addition, the foreign trust

certificates received from foreign partners

See Address on page 4.

or estate must complete Schedule T for

under Regulations section 1.1446-6T.

Line 3

each of its beneficiaries and must provide

See Certification of Deductions and

that Schedule T information to each

Losses on page 3. For these purposes, a

Enter the type of partner (for example,

beneficiary.

“valid certificate” refers to any certificate

individual, corporation, partnership, trust,

the partnership considers and relies on

estate).

The foreign trust or estate may provide

under the rules of Regulations section

all of the information listed in the previous

Line 4

1.1446-6T.

paragraph on a single Form 8805 for

See Country Codes on pages 7 and 8.

each of its beneficiaries. In this case, the

Line 6b

information provided in boxes 1a through

Line 5c

Enter on line 6b the amount of section

10 will be the same for all of the

1446 tax withheld by lower-tier

See Address on page 4.

beneficiaries, but the information provided

partnerships with respect to ECTI

on Schedule T may vary from beneficiary

Line 8b

allocable to the upper-tier partnership

to beneficiary, depending on the

(see Tiered Partnerships on page 4). The

Check the box on this line if any of the

ownership interests of the respective

amount withheld will be shown on line 10

partnership’s ECTI is treated as not

beneficiaries.

of the Form 8805 the partnership receives

allocable to the foreign partner identified

Line 11c

from the lower-tier partnership. If the

on line 1a and therefore exempt from

partnership receives a Form 1042-S from

section 1446 withholding because the

See Address on page 4.

a lower-tier PTP, the amount withheld will

income is exempt from U.S. tax for that

Line 12

be shown in box 7 of the Form 1042-S.

foreign partner by a treaty, reciprocal

(Box 1 of the Form 1042-S will show

exemption, or a provision of the Internal

Enter the amount of ECTI on line 9 to be

income code 27.)

Revenue Code.

included in the beneficiary’s gross

-5-

Instructions for Forms 8804, 8805, and 8813

Instructions For Forms 8804, 8805, And 8813 - 2007 Page 5

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